The Housing Market Has Already Hit Bottom...

The signs are all over the place. The housing market has hit the bottom and is due to spring up in the next couple months.

Here are the basic facts:
- Home sales contracts rose in June. Click here for the Reuters story
- The $300 Billion Housing Bailout Bill has been signed into law.
Click here for the Reuters Video
- The gas prices we've all felt the pain from have caused the cost of home building materials to raise sharply. Home builders will have to charge more for new homes in the coming months. If they don't (or are not able to get the higher prices), then they will slow down construction of new homes causing a shortage. The rule of "Supply & Demand" says if supply of new homes goes down, then the price will go up. Plain and simple.


What does all this mean to you? Well, the market activity is picking up, sales are picking up, the news media is seeing all the signs of the market stabilizing but are trying to stick with the problem stories because bad news sells better. The stories are beginning to be comical... "The real estate industry had some good news (sales are up), but something bad thing could happen at some point in the future."

I believe that the stories that will be reported starting somewhere around January of 2009 will be reporting that the housing crisis is over, the market hit bottom in August or September with the Housing Bailout legislation... All the polititicians, especially the newly elected ones taking office, will be taking credit for having fixed the housing industry problems. We'll have a new President who will be taking credit for having fixed the problems and created new jobs and got the economy rolling forward again...

The smart investors are quietly gobbleing-up the real estate on the market now and will be for the next few months. Next Summer, you'll be able to recognize them... They'll be the ones smiling!!

-Bill